EIA: US commercial crude inventory fell by a surprising 5.1 million barrels

US commercial crude oil inventories declined by a substantial 5.1 million barrels in the week ending November 29, 2024, according to data from the Energy Information Administration (EIA). This drawdown far exceeded market expectations, with a Reuters poll predicting a modest decrease of 700,000 barrels.

As of the reporting date, US crude oil inventories stood at 423.4 million barrels, approximately 5% below the five-year average for this time of year.

Refinery utilization rates surged to 93.3%—the highest level in four months—driving the decline in crude stockpiles. Simultaneously, total motor gasoline inventories rose by 2.4 million barrels from the previous week, reaching 214.6 million barrels.

"The uptick in refinery activity has triggered a notable shift, with crude inventories shrinking while product stockpiles expand," noted an industry analyst.

Net crude imports also increased significantly, rising by more than 1.6 million barrels per day to average 3.06 million barrels per day during the reporting week. Over the past four weeks, crude imports averaged 6.9 million barrels per day, representing a 5% increase compared to the same period in 2023.

Meanwhile, US crude oil production remained steady at a record 13.5 million barrels per day, reflecting the resilience of domestic output despite market fluctuations.

Written by: Muhammad Hafiz